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Strategywarm-up

What is Amazon's moat, and how could a new company attack it?

How to approach it

Name the parts of the moat clearly (logistics, selection, Prime habit, seller base) and look for a segment where those advantages matter less.

How a strong answer opens

“I'd name the parts of Amazon's moat clearly: logistics, selection, the Prime habit and its seller base. Then I'd look for a segment where those advantages matter less.”

Outline of a strong answer

Try answering out loud for a few minutes before you open this.

  1. Define the main moats
  2. Explain how they reinforce each other
  3. Look for weak spots: niche categories, local speed, curation
  4. Pick an angle for the attacker, such as same-hour delivery of one category in dense cities
  5. Name what the attacker must get right
  6. Explain how Amazon might respond

Where this question usually goes wrong

Proposing to beat Amazon head-on across everything instead of finding a niche where its advantages matter less.

Learn the method

Responding to a competitor in Module 5, Product strategy.

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